DAILY BUSINESS REVIEW WEDNESDAY, JANUARY 11, 2017 dailybusinessreview.com A17 BANKING/ FINANCE In World of Apple and Spotify, SoundCloud Can’t Find Room by Adam Satariano and Lucas Shaw CITY OF DORAL Bloomberg News NOTICE OF PUBLIC HEARING After years of trading physical dollars All residents, property owners and other interested parties are hereby notified of a Council Zoning for digital dimes, the music industry is Hearing on Wednesday, January 25, 2017, beginning at 6:00 PM, to consider the following variance application. This meeting will be held at the City of Doral, Government Center, Council Chambers finally seeing a payoff. Subscriptions to located at 8401 NW 53rd Terrace, Doral, Florida, 33166. The proposed variance application applies to streaming music services jumped about the property shown on the map below. 50 percent in 2016, topping 92 mil- The City of Doral proposes to adopt the following Resolution: lion. For the first time since the heyday of CDs, revenue for the largest record RESOLUTION No. 17- labels is consistently rising. But things A RESOLUTION OF THE MAYOR AND THE CITY COUNCIL OF THE CITY OF DORAL, don’t look as bright for the streaming FLORIDA, APPROVING/DENYING A VARIANCE APPLICATION FROM MIAMI-DADE ANIMAL companies driving this revival. SERVICES PET ADOPTION AND PROTECTION CENTER TO PERMIT A MONUMENT SIGN TO Spotify, the biggest platform, has BE LOCATED 100+/- FEET FROM A PREVIOUSLY PERMITTED MONUMENT SIGN WHERE 200 FEET IS REQUIRED PER SECTION 80-260 OF THE LAND DEVELOPMENT CODE ON swallowed huge losses while paying PROPERTY LOCATED AT 3599 NW 79 AVENUE, DORAL, FLORIDA; AND PROVIDING FOR AN about 70 percent of its revenue to re- EFFECTIVE DATE cord labels and publishers. It’s attempt- HEARING NO.: 17-01-DOR-07 ing to renegotiate those deals before a APPLICANT: Miami-Dade County, Animal Services Department planned initial public offering this year. Shutterstock PROJECT NAME: Miami-Dade Animal Services Pet Adoption and Protection Center Pandora, which has consistently lost Although SoundCloud is beloved among art- LOCATION: 3599 NW 79th Avenue, Doral, Florida 33166. money throughout its 15 years, is try- ists and fans, and is a darling of the European FOLIO NUMBERS: 35-3027-007-0010 ing its hand at a pricier subscription startup scene, it’s facing an uncertain future. SIZE OF PROPERTY: 5.04± Acres model based on technology from Rdio, PRESENT LAND USE: Doral Design District Core songs with a massive catalog of tracks PRESENT ZONING: Industrial another struggling service it bought in REQUEST: Miami-Dade County, Animal Services Department is requesting a variance to permit a 2015. Streaming services Rhapsody created by and for young tastemakers. monument sign to be located 100+/- feet from a previously permitted monument sign where 200 feet is and Deezer face similar problems, and “There are very few music platforms at required per Section 80-260 of the Land Development Code. internet radio company IHeartRadio is this tremendous scale,” Ljung said. “We LEGAL DESCRIPTION: CRUDELE AIRPORT INDUSTRIAL PARK PB 86-29 PORT OF TR-A BEG NE trying to stave off bankruptcy. Services are one of them.” COR OF TR-A S383.181FT W352FT N26FT W223.960FT N348.925FT NELY A/D40.03FT E559.928FT from Apple, Amazon.com, and Google SoundCloud board member Fred TO POB LOT SIZE 219863 SQUARE FEET OR 16399-0668 0694 1 F/A/U 30-3027-007-0010 OR 23009- 0920 01 2005 1. are used largely to lure people to the Wilson, an early investor, said digital companies’ other businesses. music has reached an inflection point Location Map “It is virtually impossible to run a and most consumers are ready to tran- streaming-music service as a profitable sition from owning music to streaming business,” said Mark Mulligan, a former it online. Even if record labels continue dance club DJ who’s the founder of in- gobbling the bulk of the revenue, “the dustry analyst Midia Research. “The platforms that get all the way through model is still broken.” to the finish line are going to have great No company exemplifies the travails businesses,” Wilson said, citing Amazon of digital music services better than and Netflix as examples in other fields. SoundCloud. Founded in 2007, the Streaming services may also benefit Berlin company has attracted about 175 by helping artists sidestep labels to di- million users with 135 million tracks of rectly distribute music. Major labels get easy-to-share remixes, podcasts, and about one-quarter of a cent each time user-generated content. SoundCloud is a song is streamed, and the artists get beloved among artists and fans, and a about 15 percent of that, Mulligan said. darling of the European startup scene. Last year, singer Frank Ocean dealt di- It’s also facing an uncertain future. User rectly with Apple Music to release his growth has stalled, ad sales haven’t tak- album Blonde, cutting out Universal en off, and adoption of its 9-month-old Music Group. “That’s very much a sign paid service, SoundCloud Go, has been of what’s coming,” said Stephen White, weak. (Mulligan estimates fewer than CEO of music-licensing marketplace Information relating the subject application is on file and may be examined in the City of Doral, Planning Dubset. and Zoning Department Located at 8401 NW 53rd Terrace, Doral, FL. 33166. All persons are invited 250,000 people have signed up. The to appear at this meeting or be represented by an agent, or to express their views in writing addressed company wouldn’t say.) It remains unclear whether to the City Clerk, 8401 NW 53rd Terrace, Doral, Fl. 33166. Maps and other data pertaining to these SoundCloud’s negotiations to sell to SoundCloud will be able to enjoy the applications are available for public inspection during normal business hours in City Hall. Any persons Spotify fell apart in recent weeks be- benefits of having pioneered this kind wishing to speak at a public hearing should register with the City Clerk prior to that item being heard. cause the two sides couldn’t agree on of shift in distribution. In 2014, before Inquiries regarding the item may be directed to the Planning and Zoning Department at 305-59-DORAL. a price, said a person familiar with Apple Music existed, SoundCloud was Pursuant to Section 286.0105, Florida Statutes If a person decides to appeal any decisions made by the the discussions. Some of the most loy- preparing to take the fight to Spotify’s City Council with respect to any matter considered at such meeting or hearing, they will need a record of al SoundCloud fans are migrating to $10-a-month paid subscription, de- the proceedings and, for such purpose, may need to ensure that a verbatim record of the proceedings veloping a $4 monthly service to pair is made, which record includes the testimony and evidence upon which the appeal is to be based. This similar services, such as Mixcloud. And notice does not constitute consent by the City for introduction or admission of otherwise inadmissible some prominent DJs have worked out its user-generated content with a li- or irrelevant evidence, nor does it authorize challenges or appeals not otherwise allowed by law. In deals to post mixes legally on Spotify brary of new releases and pop, ac- accordance with the Americans with Disabilities Act, all persons who are disabled and who need special and Apple Music. If SoundCloud can’t cording to a former manager involved accommodations to participate in this meeting because of that disability should contact the Planning come up with a sustainable business in the effort. and Zoning Department at 305-59-DORAL no later than three (3) business days prior to the proceeding. model, it will have to find another buyer This bid to become a cheaper Spotify NOTE: If you are not able to communicate, or are not comfortable expressing yourself, in the English or raise more money, likely at a lower was a bet-the-company moment, the language, it is your responsibility to bring with you an English-speaking interpreter when conducting valuation than the $700 million it nego- former manager said, and the subscrip- business at the City of Doral during the zoning application process up to, and including, appearance tiated when Twitter invested last year. tion service’s developers circulated a at a hearing. This person may be a friend, relative or someone else. A minor cannot serve as a valid beta version among employees while interpreter. The City of Doral DOES NOT provide interpretation services during the zoning application “They are in big trouble,” said Matt process or during any quasi-judicial proceeding. Pincus, chief executive officer of Songs waiting for the record labels to buy in. Music Publishing, which represents art- It didn’t work. Two of the largest labels, NOTA: Si usted no está en capacidad de comunicarse, o no se siente cómodo al expresarse en inglés, es Universal Music Group and Sony Music, de su responsabilidad traer un intérprete del idioma inglés cuando trate asuntos públicos o de negocios ists including the Weeknd and Lorde. con la Ciudad de Doral durante el proceso de solicitudes de zonificación, incluyendo su comparecencia SoundCloud CEO Alexander Ljung withheld support for almost two years. a una audiencia. Esta persona puede ser un amigo, familiar o alguien que le haga la traducción durante declined to discuss the Spotify talks or By March, when SoundCloud Go was su comparecencia a la audiencia. Un menor de edad no puede ser intérprete. La Ciudad de Doral NO the company’s finances beyond say- finally released, it cost $10 a month, suministra servicio de traducción durante ningún procedimiento durante el proceso de solicitudes de ing that subscription and ad revenue not $4, and its library of about 15 mil- zonificación. are growing. He said his company has lion professional tracks was about half Connie Diaz, CMC a distinct advantage over Spotify and the size of Spotify’s and Apple Music’s. City Clerk Apple Music because it’s the only ser- By then, several former employees say, City of Doral vice to combine a library of mainstream they had grown frustrated and left. 1/11 17-77/0000186053M